Module 1 Contemporary World

Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY College of Arts and Sciences Bambang, Nueva Vizcaya

INTRODUCTION AND MEANING OF GLOBALIZATION Objectives: At the end of the discussions, the students are expected to: 1. 2. 3. 4.

share a personal definition of globalization; describe the natures of globalization; differentiate competing conception of globalizations; and synthesize and agree on a working definition of globalization for the course

INTRODUCTION This module examines the natures of globalization.

DEFINITION OF GLOBALIZATION Globalization is a term used to describe the changes in societies and the world economy that are the result of dramatically increased trade and cultural exchange. In specifically economic contexts, it refers almost exclusively to the effects of trade, particularly trade liberalization or "free trade". 1|Page

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It is a common belief that globalization plays a role just at international levels of trade and commerce, but the fact is that it has played an important role in making our lives much more comfortable too. The phones, apparels, gadgets or accessories that we use in our day-to-day life are be available to us through globalization. Knowingly or unknowingly, we are all under the impact of globalization, and more importantly it has helped in bringing international peace and justice to mankind. NATURES OF GLOBALIZATION 1. Liberalization: It stands for the freedom of the entrepreneurs to establish any industry or trade or business venture, within their own countries or abroad. 2. Free trade: It stands for free flow of trade relations among all the nations. Each state grants MFN (most favored nation) status to other states and keeps its business and trade away from excessive and hard regulatory and protective regimes. 3. Globalization of Economic Activity: Economic activities are be governed both by the domestic market and also the world market. It stands for the process of integrating the domestic economy with world economies. 4. Liberalization of Import-Export System: It stands for liberating the import- export activity and securing a free flow of goods and services across borders. 5. Privatization: Keeping the state away from ownership of means of production and distribution and letting the free flow of industrial, trade and economic activity across borders. 6. Increased Collaborations: Encouraging the process of collaborations among the entrepreneurs with a view to secure rapid modernization, development and technological advancement. 7. Economic Reforms: Encouraging fiscal and financial reforms with a view to give strength to free world trade, free enterprise, and market forces. Globalization accepts and advocates the value of free world trade, freedom of access to world markets and a free flow of investments across borders. It stands for integration and democratization of the world’s culture, economy and infrastructure through global investments.

GLOBALIZATION can mean: The formation of a global village - closer contact between different parts of the world, with increasing possibilities of personal exchange, mutual understanding and friendship between "world citizens", Economic globalization - "free trade" and increasing relations among members of an industry in different parts of the world (globalization of an industry), with a corresponding erosion of National Sovereignty in the economic sphere.

SIGNS OF GLOBALIZATION 1. Increase in international trade at a faster rate than the growth in the world economy. 2. Increase in international flow of capital including foreign direct investment.

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3. Greater trans-border data flow, using such technologies such as the Internet, communication satellites and telephones 4. Greater international cultural exchange, for example through the export of Hollywood and Bollywood movies. 5. Some argue that even terrorism has undergone globalization. Terrorists now have attacked places all over the world. 6. Spreading of multiculturalism and better individual access to cultural diversity, with on the other hand, some reduction in diversity through assimilation, hybridization, Westernization, Americanization or Sinosization of cultures. 7. Erosion of national sovereignty and national borders through international agreements leading to organizations like the WTO and OPEC. 8. Greater international travel and tourism. 9. Greater immigration, including illegal immigration. 10. Development of global telecommunications infrastructure. 11. Development of a global financial systems. 12. Increase in the share of the world economy controlled by multinational corporations. 13. Increased role of international organizations such as WTO, WIPO, IMF that deal with international transactions. 14. Increase in the number of standards applied globally; e.g. copyright laws. Anti-Globalization 

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Many anti-globalism activists see globalization as the promotion of a Corporatist agenda, which is intent on constricting the freedoms of individuals in the name of profit. They also claim that increasing autonomy and strength of corporate entities increasingly shape the political policy of nation-states. Globalization imposes credit based economics, resulting in unsustainable growth of debt and debt crises.

Pro-Globalization 

Supporters of free trade point out that economic theories such as comparative advantage suggests that free trade leads to a more efficient allocation of resources, with all those involved in the trade benefitting. In general, they claim that this leads to lower prices, more employment and better allocation of resources.

GLOBALIZATION IN THE PHILIPPINES The country is taking part in the process of globalization ever since the country signed agreements with World Trade Organization in 1995. Now, globalization is very effective in the Philippines, it has allowed major changes in the nation like more labor, and more Filipino and foreign companies has emerged in the nation in order to help the country’s developing economy. Globalization can make the Philippines into a better nation if the Philippine leaders to make their economy more advance through global trading and allowing more foreign investors to the help boost the economy. And by accomplishing those goals, the Philippines should be able to reduce the poverty level as well as increase labor force for job opportunities for those that are in need for a living. However, since the poverty level is still increasing, most Filipinos has managed to find work overseas and they have managed to seek better living than in the Philippines. The 3|Page

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most effective factor in the Philippines is education. The society’s mentality is to be educated and it’s with education that people in the nation see their opportunity for a better life in the future.

ADVANTAGES OF GLOBALIZATION Peaceful Relations - Most of the countries have resorted to trade relations with each other in order to boost their economy, leaving behind any bitter past experiences if any. Employment - Considered as one of the most crucial advantages, globalization has led to the generation of numerous employment opportunities. Companies are moving towards the developing countries to acquire labor force. Education - A very critical advantage that has aided the population is the spread of education. With numerous educational institutions around the globe, one can move out from the home country for better opportunities elsewhere. Product Quality - The product quality has been enhanced so as to retain the customers. Today the customers may compromise with the price range but not with the quality of the product. Low or poor quality can adversely affect consumer satisfaction. Cheaper Prices - Globalization has brought in fierce competition in the markets. Communication - Every single information is easily accessible from almost every corner of the world Circulation of information is no longer a tedious task, and can happen in seconds. The Internet has significantly affected the global economy, thereby providing direct access to information and products. Transportation - Considered as the wheel of every business organization, connectivity to various parts of the world is no more a serious problem. Today with various modes of transportation available, one can conveniently deliver the products to a customer located at any part of the world. GDP Increase - Gross Domestic Product, commonly known as GDP, is the money value of the final goods and services produced within the domestic territory of the country during an accounting year. Free Trade - Free trade is a policy in which a country does not levy taxes, duties, subsidies or quota on the import/export of goods or services from other countries. There are countries which have resolved to free trade in specific regions. This allows consumers to buy goods and services, comparatively at a lower cost. Travel and Tourism - Globalization has promoted tourism to great heights. International trade among different countries also helps in increasing the number of tourists that visit different places around the world. External Borrowing - With the help of globalization, there is opportunity for corporate, national, and sub-national borrowers to have better access to external finance, with facilities such as external commercial borrowing and syndicated loans. DISADVANTAGES OF GLOBALIZATION Health Issues. Globalization has given rise to more health risks and presents new threats and challenges for epidemics. The dawn of HIV/AIDS. Having its origin in the wilderness of Africa, the virus has spread like wildfire throughout the globe in no time. Food items are also transported to various countries, and this is a matter of concern, especially in case of perishable items. 4|Page

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Loss of Culture. With large number of people moving into and out of a country, the culture takes a backseat. People may adapt to the culture of the resident country. They tend to follow the foreign culture more, forgetting their own roots. This can give rise to cultural conflicts. Uneven Wealth Distribution. It is said that the rich are getting richer while the poor are getting poorer. In the real sense, globalization has not been able to reduce poverty. Environment Degradation. The industrial revolution has changed the outlook of the economy. Industries are using natural resources by means of mining, drilling, etc. which puts a burden on the environment. Disparity. Though globalization has opened new avenues like wider markets and employment, there still exists a disparity in the development of the economies. Structural unemployment owes to the disparity created. Developed countries are moving their factories to foreign countries where labor is cheaply available. Conflicts. It has given rise to terrorism and other forms of violence. Such acts not only cause loss of human life but also huge economic losses. Cut-throat Competition. Opening the doors of international trade has given birth to intense competition. This has affected the local markets dramatically. The local players thereby suffer huge losses as they lack the potential to advertise or export their products on a large scale. Therefore, the domestic markets shrink. Globalization can be: 1. Cultural 2. Economic 3. Political 4. Social 5. Industrial 6. Technological 7. Ecological 8. Geographical Cultural globalization - is the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations. This process is marked by the common consumption of cultures that have been diffused by the Internet, popular culture media, and international travel. Economic globalization refers to the increasing interdependence of world economies as a result of growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies (Shangquan, 2000). Industrial Globalization Every country in the world is moving towards specialization. Specialization may be referred to as the phenomenon of producing only that product in which the country has competitive advantage in terms of cost. For example, Singapore specializes in pharmaceutical while the US specializes in military equipment. Therefore, the countries exchange their industrial products, which is known as trade, and fulfill the requirements of their people. Every country of the world today is involved in trade and is depended on some other country one way or the other. The US is the biggest economy in the world and even that is depended on other countries for many of its needs. Hence the industries 5|Page

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of the world today are considered to be working not for their native countries but for the world as a whole. Financial Globalization It may be defined as the emergence of worldwide financial markets and better access to external financing for corporate, national and sub-national borrowers. Some projects in the Philippines were sponsored by foreign investors. They may be in the form of international organizations or independent investors. The IMF and the World Bank today give funds to various countries for developmental projects. We may say, that today the financial markets of the world have untied in such a way that finances are easily available throughout the world. Informational Globalization This aspect of Globalization has perhaps had the greatest impact on the world today. Sitting at one end of the world, you can have access to the information available in any other part of the world with just the push of a button. Internet, television, telephone, fax, etc. are some of the inventions that may be considered as a part of the informational Globalization process where the information flow has dramatically increased between geographically remote areas of the world. Social globalization refers to the sharing of ideas and information between and through different countries. In today’s world, the Internet and social media is at the heart of this. Good examples of social globalization could include internationally popular films, books and TV series. The Harry Potter/ Twilight films and books have been successful all over the world, making the characters featured globally recognizable. However, this cultural flow tends to flow from the center (i.e. from developed countries such as the USA to less developed countries). Social globalization is often criticized for eroding cultural differences. Ecological globalization. The effects of globalization in the ecology are still not completely identified, though some studies suggest that the process of globalization has many consequences in our ecology. Globalization and the Politics. Through globalization, political issues such as the rights of women and children are now currently discussed, many laws are now already implemented regarding the issues on the rights of women and children. Globalization with technology. Technology really plays a huge part in the life of every individual. Also through the advancement of technology we can now already communicate with others despite the distance that separate us. And through our technology today, the process of globalization is now taking place much faster. Geographical. Globalization is moving towards the trend of a borderless world. We can now explore different countries without having any dangers.

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Qualities and Characteristics of Globalization

Creation and Multiplication - involves creation of new and multiplication of existing social networks and cultural activities thus, breaking the traditional norms and practices in the political, economic, and cultural realms of most communities.

Expansion and Stretching - globalization is very evident in the expansion and stretching of social operations and connections, on how the financial markets and trading operate around the globe like the (WTO) World Trade Organization, ASEAN Economic Community, World Economic Forum and European Union brought to the expansion of local economies through opening their economies to the other parts of the world. Consciousness and Awareness - globalization involves the human consciousness and awareness. People, as the primary actors of globalization are the frontliners as reflected in their experiences. The human consciousness is critical on how they impact the growing outcomes and markers of globalization. Their daily actions such as global interdependence provide largescale implications to the norms and practices of the borderless world.

GLOBALIZATION OR WESTERNIZATION? For westerners’ conception on the term globalization, scholars attributed it as part of the growing imperialist mechanism of American and Western powers, which they considered as the building blocks of technological and economic innovations. Such phases of developments were interpreted as “westernization” in which they strongly linked the global events to the American imperialism. The idea of Westernization is deeply rooted in the Western World where often associated with the Western culture and values. The World Wide Web (www) for example, is the hallmark for the integration of western and eastern culture. CONCLUSION

Globalization helps us in various ways such as it INCREASES COMPETITIONS between the markets having them to improve the quality of products that they are selling. It also provides new jobs and it INCREASES THE EMPLOYMENT RATE. Moreover, it also SPREADS THE KNOWLEDGE OF NEW INVENTIONS and it helps in the SPREAD OF EDUCATION too. Without globalization we will not be able to be in our current states nowadays. However, despite these positive effects, we still cannot deny the fact that there will always be a negative impact of globalization. One of the negative impacts of globalization is the ENVIRONMENTAL DEGRADATION where in the environment is being ruined because the amount of raw materials needed to run industries and factories is taking toll on the natural reserves of the planet earth. Also, there is a growing GAP BETWEEN THE RICH AND THE POOR because the rich are getting richer while the poor are struggling for a square meal and they are getting poorer and 7|Page

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poorer every day. Furthermore, it is also the reason why there is a RISE IN HEALTH RISKS because globalization bought people from various countries together which makes it easier to transport viruses from one country to the other. It is indeed that a globalization is a blessing and a curse at some point. Globalization will always be there and it will never stop. It is only up to us how we will handle and take it. Let us be flexible and open minded to the things that are coming to us but let us not forget to be cautious because not everything we think are good is always good, because at the end of the day there will always be an effect that we will never forget. ALWAYS REMEMBER THAT GLOBALIZATION IS FULL OF OPPORTUNITIES AND THREATS.

References

Dacles, Darwin Don M. & Maslang, Kenneth L.(2018), The Contemporary World. Bayombong, Nueva Vizcaya: SMU Publishing House Haywood, A. Politics. London: Palgrave Mcmillan. 2012. https://pdfs.semanticscholar.org/59a4/146f5d62237e74e0ca1082ae24e3d1e5028a.pdf http://www.revistadestatistica.ro/suplimente/2012/4/srrs4_2012a22.pdf https://www.zeepedia.com/read.php?globalization_aspects_of_globalization_industrial_globali zation International Sociology (London, Thousand Oaks, CA and New Delhi) June 2000 Vol 15(2): 180– 196SAGE

References: Dacles, Darwin Don M. & Maslang, Kenneth L.(2018), The Contemporary World. Bayombong, Nueva Vizcaya: SMU Publishing House https://ched.gov.ph/sample-suggested-syllabi-new-general-education-gec-core-courses/ http://www.revistadestatistica.ro/suplimente/2012/4/srrs4_2012a22.pdf

Prepared by: Brilian Gumayagay Tomas June 2020

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Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY COLLEGE OF ARTS AND SCIENCES Bambang Campus SECOND SEMESTER, S.Y 2018-2019 First Group Activity:

Explain the concept/idea of Globalization by analyzing the photo above.

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References: Dacles, Darwin Don M. & Maslang, Kenneth L.(2018), The Contemporary World. Bayombong, Nueva Vizcaya: SMU Publishing House https://ched.gov.ph/sample-suggested-syllabi-new-general-education-gec-core-courses/ http://www.revistadestatistica.ro/suplimente/2012/4/srrs4_2012a22.pdf Prepared by: Brilian Gumayagay Tomas March 2019

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